AO has posted a strong profit performance which surpassed expectations, as it moves back to being a double digit revenue growth business in the year ahead.
For the full year to March 31, adjusted profit before tax at the retailer surged 186% to £34.3m, exceeding its previous guidance of between £28m and £33m.
Total revenue for the period was £1.04bn, down 9% from £1.14bn last year which AO said was “as expected”, reflecting the impact of strategic decisions to eliminate non-core channels and loss-making sales.
AO said it had over 600,000 new customers join the business FY24, with repeat customers accounting for 54% of all transactions.
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Despite ongoing macro-economic challenges, AO is confident in its ability to achieve double-digit revenue growth in FY25, alongside an adjusted profit before tax of £36m to £41m.
It reiterated its medium-term guidance of an adjusted profit before tax margin of 5%, double-digit growth.
AO founder and chief executive John Roberts said: “We have made good progress on our profit performance in FY24, which is a testament to the success of our strategic pivot to focusing on profit and cash generation.
“We are now a much simpler, more efficient business and are performing better than ever for customers, with excellent and sustainable unit economics.
“Our focus now is on delivering profitable top line growth with an ambition for double digit revenue growth in FY25.”
Roberts highlighted that AO was the “the leading and most trusted UK retailer” as it passed the milestone of 500,000 Trustpilot reviews, and increased its score to 4.8 out of 5.
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